Cash seizures by tax officials rise ahead of elections in five states: CBDT
In the lead-up to the assembly elections in five states, the Income Tax Department has reportedly seized a higher amount of unexplained cash compared to previous elections in those states, according to CBDT Chairman Nitin Gupta. This announcement was made on Wednesday, indicating an increased focus on curbing illicit financial activities during the electoral process.
Gupta mentioned that ahead of both the state assembly elections and Lok Sabha elections, various enforcement agencies, including the Income Tax Department, ramped up surveillance efforts. Additionally, toll-free numbers were established for the specific purpose of gathering information about unexplained cash and jewellery. This proactive approach aimed to tackle the potential influx of unaccounted money and valuables that could be used to influence the electoral process.
The utilization of toll-free numbers suggests a strategy to encourage the public to come forward with information regarding any suspicious financial transactions or possessions. This could involve individuals voluntarily reporting instances of unexplained wealth, thereby aiding enforcement agencies in their efforts to maintain the integrity of the electoral process.
The emphasis on increased surveillance by enforcement agencies reflects a commitment to ensuring free and fair elections by curbing the influence of black money. Unexplained cash and assets can be used to fund illegal activities, including bribery and corruption, which may undermine the democratic process.
Overall, these measures taken by the Income Tax Department and other enforcement agencies signify a comprehensive effort to uphold the transparency and fairness of the electoral system by identifying and addressing potential financial irregularities during the election period.
According to CBDT Chairman Nitin Gupta, in the current states undergoing elections, the Income Tax Department has seized more cash than what was seized during the corresponding time in both the state assembly elections and the Lok Sabha elections of 2019. Gupta conveyed this information to reporters, highlighting the heightened efforts to curb illicit financial activities during the electoral process.
Gupta emphasized the intensity of pre-election monitoring of unexplained cash and surveillance, stating that the entire activity is coordinated at the level of the Election Commission and state election authority. This coordination suggests a collaborative approach involving multiple agencies to ensure comprehensive monitoring and enforcement.
Additionally, sources indicate a significant increase in the total seizure of illegal items such as cash, liquor, drugs, gold, and silver in poll-bound Rajasthan. The data reveals a notable surge from Rs 322 crore in 2021 and Rs 347 crore in 2022 to Rs 1,021 crore until October 2023. This three-fold increase in seizures suggests a more robust effort to address and counter potential attempts to influence the electoral process through the injection of unaccounted funds and other illegal means.
The rising figures in cash and item seizures underscore the commitment to maintaining the integrity of the electoral process and preventing the misuse of financial resources during elections. The coordination between different authorities and the substantial increase in seizures indicate a proactive approach to address potential challenges related to illicit financial activities in the context of elections.
As the states of Chhattisgarh, Telangana, Rajasthan, Madhya Pradesh, and Mizoram gear up for elections in November, the Central Board of Indirect Taxes and Customs (CBIC), the apex authority in indirect tax, has taken significant steps to safeguard the integrity of the electoral process. In July, the CBIC issued a Standard Operating Procedure (SoP) for tax officers, aligning with the directives of the Election Commission.
The primary focus of this initiative is to address concerns related to the exploitation of freebies, illicit cash, liquor, and drugs to influence voters. The SoP mandates tax officers to closely monitor the distribution of coupon-based or free fuel and cash, specifically designed to entice prospective voters. Moreover, the CBIC emphasized the importance of sharing relevant information with other enforcement agencies, fostering a collaborative effort to combat electoral malpractices effectively.
Additionally, GST and Customs officials were directed to establish “flying squads and static surveillance teams.” These teams play a pivotal role in conducting road and transit checks of vehicles, along with verifying warehouses to curb illegal and prohibited activities. The issuance of this SoP underscores a proactive approach to prevent the misuse of financial resources and illegal substances during the electoral process, highlighting the commitment to ensuring free and fair elections in the aforementioned states.
